WPX Energy Inc. (NYSE: WPX) continues to unravel its holdings in the Marcellus Shale as the company proceeds with its gas-to-oil strategy initiated late last year.

Tulsa, Okla.-based WPX said it signed an agreement on May 4 to sell a package of Marcellus marketing contracts and release certain related transportation capacity to an undisclosed buyer for in excess of $200 million cash.

The sale includes various long-term natural gas purchase and sales agreements, along with 135 million British thermal units per day of firm transportation capacity on Transco’s Northeast Supply Link project.

Upon completing the transaction, WPX will be released from various long-term natural gas purchase and sales obligations and about $390 million in future demand payment obligations associated with the transport position.

“Unwinding noncore positions in an attractive fashion increases our financial flexibility and is further proof of our solid execution,” said Rick Muncrief, president and CEO of WPX, in a statement.

WPX unveiled a new strategy in early October that it hopes will triple the size of the company by the end of the decade after cutting its portfolio in half. The company plans to simplify its focus to three core resource plays: the Williston, San Juan and Piceance basins.

The sale is WPX’s second transaction in the Marcellus Shale since it launched its new strategy. In February, it closed the sale of 46,700 net acres of Marcellus assets in Susquehanna County, Pa., to Southwestern Energy Corp. (NYSE: SWN) for about $300 million.

“Our team continues to be opportunistic, build our balance sheet strength and act quickly, decisively and creatively,” Muncrief said.

Over the past year, WPX has initiated more than $1 billion in transactions. It intends to focus the business, strengthen its balance sheet and increase the scalability of core assets. In the process, it will divest the nearly 114,000 net acres it holds in the Marcellus.

WPX’s only remaining assets in the Marcellus primarily consist of its physical operations in Westmoreland County in southwestern Pennsylvania, which remain targeted for divestiture.

The transaction is expected to close in the second quarter, subject to regulatory approval and typical closing conditions.

Contact the author, Emily Moser, at emoser@hartenergy.com.